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George Maponga Masvingo Bureau
The revival of closed industries in Masvingo continues to gather momentum, with the impending reopening of Steel Makers Sponge Iron plant in the city’s industrial area expected to boost economic activity earning the country $3 million in exports annually. The plant, commonly known as Sponge Iron and Mining Beneficiation Industries (SIMBI) Pvt Ltd, has been mothballed since 2015 due to a dip in prices on the international steel market.

At its peak, SIMBI used to employ more than 150 permanent employees and producing between 2 500 to 3 000 tonnes of sponge iron per month.

The company is set to resume operations soon due to improved economic conditions now prevailing in the country after the advent of the new political dispensation led by President Mnangagwa.

In a statement after a tour of the plant, Masvingo Provincial Affairs Minister Senator Josaya Hungwe said the firm’s impending reopening would stimulate economic growth in the country’s oldest town and the entire nation.

Senator Hungwe said revival of the SIMBI plant was testament of Government’s commitment to promote new investments and resuscitate closed industries.

“The company (SIMBI) ceased operations in 2015 during the depression of the world steel market,” he said.

“The improvement in the prices of steel has since necessitated the company to consider resuscitation of its operations. The plant has an installed capacity of 100 tonnes per day, which translates to between 2 500 and 3 000 tonnes of sponge iron per month.’’

Senator Hungwe said SIMBI was poised to operate at 100 percent capacity.

Besides directly employing around 150 people, SIMBI’s revival would also lead to the reopening of the Glenlivet Iron Ore Mine, about 35km east of Masvingo city along the Masvingo-Mutare Highway.

Another mine that will supply coal to the SIMBI plant will be reopened in the Gudo area of Chiredzi, creating a further 140 direct jobs.

Sen Hungwe reiterated that Masvingo was open for business and challenged other closed firms to embrace the new political dispensation and open shop in Masvingo city and other parts of the resource-rich province.

He said SIMBI’s reopening, coupled with the planned revival of the Cold Storage Company plant in Masvingo and Mashaba asbestos mine in Mashava, would further spur economic growth in the province through job creation and other attendant spin-offs.

SIMBI general manager Mr Baggam Anand Rao said upon reopening, his firm would recruit former staff members first, but doors will remain open for other experienced people to apply for jobs.

He said initially, his firm was planning to recruit 100 workers for the SIMBI plant in the city and between 70 to 100 workers at the Glenlivet Iron Ore Mine.

A similar number will also be recruited at the firm’s coal mine in Chiredzi. Iron ore from Glenlivet will be transported by road to the Sponge Iron plant in the city, while coal from Chiredzi is moved either by road or rail to the plant.